Where there is a lease involving a manufacturer or dealer:

1. there are really two parts to the transaction.
2. there will be a difference between the cost of the asset to the lessor and its fair value at the inception of the lease.
3. the lessor's investment would be accounted for in the same way as a direct-financing lease.
4. there are really two parts to the transaction and there will be a difference between the cost of the asset to the lessor and its fair value at the inception of the lease.